J.P. Morgan has just announced a new global clearing offering, Wire365, that supports the complete range of global US dollar wire products and operates 24/7, seven days a week.
“Although our clearing systems, like the [US Federal Reserve’s Fedwire], don’t currently operate 24/7 when they do, we will be ready,” says Gayathri Vasudev, global head of cross-border payments at J.P. Morgan.
“It is an always-on ecosystem, which will be a fantastic outcome, but immediately our clients can benefit from processing payments across a global network of 4,000 institutions,” continues Vasudev.
Wire365 facilitates the cross-border movement of funds beyond the traditional processing cut-offs, with extended clearing windows to support clients in local time zones. This enhances the client experience across the Asia-Pacific region and the Middle East while optimizing working capital and liquidity between institutions and branches, even on weekends and holidays.
“With Wire365, we enhance client productivity, especially for those constrained by traditional banking hours. Clients already banking with us can immediately benefit from enhanced efficiency and faster payment processing, with no implementation delay,” states Ciaran Byrne, head of Global Clearing Product and Transformation at J.P. Morgan Payments.
As the world’s number one US dollar clearer, Vasudev says it is essential that J.P. Morgan can make payments cheaper, faster, and better. “One way we can do that is to settle through a real-time rate. Not only is it the speed of payment,” she says, “but it is also instant acknowledgement. It is not just being able to make the payments, but the readiness of your bank to provide your credit back to you.”
In the future, she continues, “We think having real-time always-on networks, where you don’t have to worry about clearing system cut-off times and having programmable payments, will be the ideal. But for now, we still invest in the traditional business, but we also have one leg in the future so that when our clients and other banks are ready, we can move them onto the new platforms if necessary.”